> For the complete documentation index, see [llms.txt](https://smartbooks.gitbook.io/smartbooks-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smartbooks.gitbook.io/smartbooks-docs/consolidation/intercompany-setup/subconsolidation-eliminations.md).

# Subconsolidation Eliminations

Smartbooks focuses on ensuring that intercompany transactions are eliminated at the correct level within your financial reports. If after specfying a subfolder as an intercompany account that needs to be eliminated and the elimination process does not process transactions at the intended level, Smartbooks allows you to manually specify the counterparties for intercompany transactions directly in the financial accounts.

**Manual Counterparty Specification for Intercompany Transactions**

If eliminations are not correctly processed at the desired level, you can follow these steps:

1. **Navigate to the Appropriate Subfolder:**
   * Go to a subfolder that is configured with an elimination behavior.
   * Open this subfolder to display the underlying general ledger accounts.
2. **Review Aggregated General Ledger Accounts:**
   * Within the subfolder, a list of all aggregated general ledger accounts is displayed.
   * Click on any of these accounts to reveal the corresponding individual general ledger accounts along with a specification of their originating entity.
3. **Assigning Counterparties:**
   * For each general ledger–entity combination, manually assign the appropriate counterparty.
   * This ensures that intercompany transactions are eliminated at the correct level as intended.

By using this feature, you can fine-tune the elimination level of intercompany relations in Smartbooks, maintaining accuracy in your financial reports even when the automatic system does not process them at the intended level.